Are Pension Related Deductions bands pro rated per week.

3CC

Registered User
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Hi,

I worked in the public sector for about 6 months in 2013. I am just checking my Pension Related Deduction for this employment and they look a little odd.

The annual bands are
First € 15,000.00 at 0%
Next € 5,000.00 at 5%
Next € 40,000 at 10%
Remainder at 10.5%

Does anyone know if these bands should be halved for someone who worked in the public sector for 6 months (and private sector for the remainder). Or are they to be applied using the amounts above?

Thanks,

3CC.
 
Thanks Partnership. It seems that my employer divided the bands out evenly over each pay period so effectively when I left part way through the year, the bands were effectively halved.

Any ideas who I need to apply to for a refund. Is this revenue?
 
my understanding is that they are paid on the full salary for the job at those rates. So if the full rate for the job is 50k then you pay according to the percentages. It does not matter that you leave after 6 months you have still only paid the six months you were due to pay. The rates do not mean that you pay the lower rate because you only work 6 months of the year.
 
Just so I understand you -if you are on a salary of €15k - then over one year you pay €0 PRD.

But if you are on a salary of €30k but leave after 6 months with earnings of €15k, you pay PRD at

€7,500 @0%
€2,500 @ 5%
€5,000 @ 10%

Is that correct?

Thanks,

3CC
 
While I am no expert, I have worked in a job where I paid PRD previously. I started half-way through the year and was paying it as though I had been there the whole year. However, the PRD is not pro-rated weekly, and so in the final pay check of the year I got a refund of the PRD which I had overpaid. Your issue has probably occurred because you were not employed at the time of the year that this adjustment should have taken place. If you look at the PRD official documentation (which I think I previously found on the department of finance website) you will see that the limits for the bands are annual.

In summary, I would expect that you have overpaid PRD and are entitled to a partial refund. However, I'm not sure where you would go to get it.
 
Just to be clear, the annual band should still apply even if you only worked in a job with PRD for a few weeks. Theoretically you could have earned 15,000 in the only one week of the year you worked in a PRD job and although you would have paid a high PRD deduction at the time, you would be entitled to a complete refund of PRD as you can earn 15,000 in a year without paying it. This is just my understanding based on how I saw it operate.
 
I think they go on the amount per year and just divide out which works out the same. Maybe check with union or hr.
 
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